Tuesday, March 12, 2019
Oil Price Strength Drives Loonie Higher
The CAD is up this morning benefitting from ongoing strength in international oil prices. Assisting oil prices are Saudi Arabia’s commitment to voluntary supply curbs and oil production disruption in Venezuela due to power outages. There is no Canadian data today or tomorrow which may leave the CAD vulnerable to releases and geopolitics from the USA and Europe.
The USD is off slightly with a small miss in monthly core CPI. Core CPI was 0.1% versus the expected 0.2% and total CPI was at expectation of 0.2%. Tomorrow will be another big day for data with durable goods data and the producer price index. It seems, for now, US/China trade talks are progressing and analysts will await any headlines as discussions continue.
The Euro has been buoyed by Theresa May’s failure to win approval from her party on her Brexit plans. Although headlines are dominated by Brexit, the ECOFIN meetings of Eurozone Finance ministers are ongoing. As discussions about the health and future of the Eurozone progress we may see important headlines cross and a formal wrap-up statement will be released end of day.
Equities are up with the Dow up 0.09%, the S&P up 0.50%, NASDAQ up 0.48% and the TSX up 0.12%. Crude Oil is up 1.13 ($57.43) while Gold is up 0.56% ($1,298.30).
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